M&S Bank introduces £220 switching incentive, but you need to stay for a year
Current account users can now earn up to £220 if they switch to M&S Bank and stay with it for a year, as the 2016 banking battle for new customers kicks off.
From today, customers who switch to one of M&S Bank’s two current accounts – its free current account or its £10/month Premium current account – and have at least two active direct debits set up when they switch, will get a £100 M&S gift card.
In addition, if you deposit at least £1,000 a month into the account, you’ll also get £10 to spend at M&S each month for the first year only.
This additional £120 is automatically loaded in £10 instalments onto the original £100 M&S gift card each month you meet the minimum pay-in requirement. You’ll get the initial gift card within one calendar month of switching.
The offer is available for a “limited time only” – M&S says there is currently no confirmed end date.
Update: 15 April 2016: This additional £120 offer ended in April 2016, but you can still earn £100 for switching to M&S.
How does this incentive compare?
However, M&S Bank isn’t the only provider to offer a current account switching incentive, so you need to weigh up all the options before deciding which account is best for you.
First Direct, for example, pays £125 for switching, while Nationwide offers free European travel insurance on its FlexAccount.
TSB meanwhile pays up to 5% in-credit interest on balances of up to £2,000, while Santander’s 123 account pays up to 3% interest on balances between £3,000 to £20,000 – although you do have to pay a £2/month fee, which increases to £5/month from 11 January.
If you often dip into your overdraft, also check the fees providers charge.
Use our tool to compare current accounts and find the best for your needs.
An overdraft is an agreement with your bank that authorises you to withdraw more funds from your account than you have deposited in it. Many banks charge for this privilege either as a fixed fee or charge interest on the money overdrawn at a special high rate. Some banks charge a fee and interest. And other banks offer a free overdraft but impose very high charges for exceeding the agreed limit of your overdraft.
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.